The £255m investment company saw its NAV per share increase by 3.8% compared with the 2% loss suffered by the Topix, in sterling terms.
The trust attributed the gain to stock selection and the positive effect of gearing over the period, with Japan Exchange Group, Iriso Electronics and Toyo Tire notable contributors
Turnover during the period was low, with just three companies bought – CyberAgent, Toyo Suisan and Sony – and seven sold.
Business confidence was improving in Japan with small non-manufacturing companies more optimistic than they have been since the bursting of the bubble in the 1980s.
Signs of inflation are emerging and the Governor of the Bank of Japan has reiterated that he remains committed to the 2% inflation target and has further monetary policy options available to achieve this.
Chairman Richard Barfield said: "Investor impatience and a desire to have a binary view, good or bad, have led to a sell-off by overseas investors recently. However we continue to believe that longer term developments are positive and valuations are now lower and therefore more attractive. Patience may be required but should be rewarded."
